On The Money: Making Sense of Investments

Stay 'on the money' with our simple explanations and practical advice on all things related to investments.

Financial investment

US stock futures rise after Fed, inflation angst drive three days of losses

   © Reuters.

  U.S. stock index futures rose in evening deals on Tuesday, signaling some recovery on Wall Street after equities clocked three straight days of losses amid uncertainty ahead of more cues on inflation and the Federal Reserve.

  But gains were largely limited, with Wall Street set to remain in a holding pattern until the release of key inflation figures later this week, as well as addresses by top Fed officials.

  S&P 500 Futures rose 0.2% to 5,274.0 points, while Nasdaq 100 Futures rose 0.2% to 18,485.0 points by 19:40 ET (23:40 GMT). Dow Jones Futures rose 0.2% to 39,758.0 points.

  PCE inflation, Fedspeak awaited for more trading cues.

  Wall Street indexes fell into a holding pattern after clocking record highs last week, with traders now seeking more cues on the path of inflation and interest rate cuts.

  An artificial intelligence-driven rally in the technology sector also saw some pullback on Tuesday, with market darling NVIDIA Corporation (NASDAQ:NVDA) falling 2.6% from near record highs. The stock steadied in aftermarket trade.

  Focus is now squarely on PCE price index data- which is the Fed’s preferred inflation gauge, due on Friday, when markets will be closed for the Good Friday holiday.

  Top Fed officials- Chair Jerome Powell and rate-setting committee member Mary Daly- are also set to speak separately on Friday, offering up more cues on interest rate cuts after the central bank signaled last week that it still planned to cut rates by 75 basis points in 2024, inflation notwithstanding.

  But anticipation of more cues on rate cuts kept Wall Street under pressure.

  The S&P 500 fell 0.3% to 5,203.58 points, while the NASDAQ Composite closed down 0.4% at 16,315.70 points on Tuesday. The Dow Jones Industrial Average fell 0.1% to 39,282.33 points. All three indexes still remained in sight of record highs hit last week.

  Merck shines in after hours trade, GME plummets

  Among major aftermarket movers, pharmaceutical giant Merck & Company Inc (NYSE:MRK) jumped nearly 5% to an indicated record high after the U.S. Food and Drug Administration approved its treatment for a rare lung disease.

  On the other hand, GameStop Corp (NYSE:GME) slid as much as 16% after its quarterly earnings missed estimates. The struggling videogame retailer also said it had cut an unspecified number of jobs in the quarter to reduce costs, as it faced continued pressure from digital platforms and dwindling consumer spending.

  Krispy Kreme Inc (NASDAQ:DNUT) rose 3.8%, extending a nearly 40% spike from during the session after it signed a deal with McDonald’s Corporation (NYSE:MCD) to sell its doughnuts through the fast food chain.

  Shockwave Medical Inc (NASDAQ:SWAV) rose 1.6%, extending gains after a 10% jump on reports that Johnson & Johnson (NYSE:JNJ) was in talks to buy the medical device maker.

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *